“It’s time to basically bring the Model S and X programs to an end,” Musk said. “We expect to wind down S and X production next quarter.”The model S and X factory in Fremont, California would be converted to produce Tesla’s upcoming Optimus robot, Musk said. Tesla’s most recent quarterly earnings report showed slumping vehicle sales and declining revenue as Musk pins the company’s futures on AI and robotics. As Tesla’s vehicle sales have fallen over the past year, Musk and the company have emphasized a shift towards AI-driven projects such as Optimus consumer robots and self-driving Robotaxis. Tesla has faced increasing competition from other electric vehicles companies, primarily China’s BYD, which overtook Tesla last year as the world’s largest electric carmaker.